Bitcoin, the world's largest cryptocurrency, has hit its long-term resistance level of $30,000. The digital asset reached around $30,500 during Tuesday morning's Asian trading session, marking a 7.1% gain on the day. This is the highest price Bitcoin has seen since June 2022, when it was plummeting due to the Terra/Luna collapse.
At that time, Bitcoin remained at this support level for about a month. This time it is acting as a level of resistance, and analysts predict a pullback from here. Crypto analyst "CrediBULL Crypto" predicts that most people agree that the rally will end somewhere between $30K and $40K. This will give everyone six months to accumulate before it reaches a new all-time high in 2024 or 2025, assuming that halving cycle history repeats itself. The "WhaleWire" account was not so bullish, claiming that Bitcoin's rally was a result of the Tether printers firing up again.
“Bitcoin is artificially rising due to Tether printing billions of USDT out of thin air. They bring in fake liquidity to lure in real liquidity, then exit once enough noobs FOMO up high again.”
Although this claim may seem farfetched, it is true that Tether has injected $14 billion into its circulating supply so far this year. However, the decline in supplies of USDC and BUSD means that the total stablecoin market capitalization is lower than it was this time last year.
Santiment, an on-chain analytics provider, attributed today's big move above $30K to Bitcoin whales. It is remarkable that Bitcoin has continued to push higher despite the United States' most extensive regulatory crackdown on the crypto industry. This reinforces the premise that crypto is a global asset that one country cannot control or suppress.
Crypto market capitalization has reached its highest level of the year at $1.29 trillion, after gaining 4.8% on the day. BTC is leading the gains, but Ethereum is also up 4.2% to trade at $1,933 at the time of writing. Most high-cap altcoins have gained between two and four percent on the day as Bitcoin lifts them higher.
The crypto market has shown resilience in the face of regulatory crackdowns and negative news, indicating that investors still have faith in the long-term potential of the industry. The future of Bitcoin and the wider crypto market remains uncertain, but for now, it seems that the bulls are in control.